Polar
Bears
Bears
A person's earnings each year are indexed for inflation, by the Social Security Administration. The person's 35 best years are then utilized to compute WHAT?
Average Indexed Monthly Earnings (AIME)
$142,800
The maximum amount a person's earnings are subject to withholding (6.2% from employer; 6.2% from employee) for contributions to the Social Security Trust Fund.
Full Retirement Age (FRA)
Using "bend points," a person's AIME is utilized to calculate THIS.
Primary Insurance Amount (PIA), which is the amount a person would receive at Full Retirement Age.
The earliest age at which someone can take social security retirement benefits.
62
Costs $148.50 per month, for this premium, in 2021. Can be more if person's taxable income is higher.
Medicare Part B
Covers hospital stays, hospice care, and transplants, for a person age 65 who is enrolled in this government program. (Specific Answer Required.)
Medicare Part A
For Medicare Supplemental Insurance Policies, plans include Plans A, B, C, F, G, K, L and N. For NEW enrollees in Medicare in 2021, which are the two most popular plans?
Plan G
Plan N
For those over 65, disadvantages of this type of health plan include: (1) limited selection of "in-network" health care providers; (2) pre-approvals needed to see specialist physicians; (3) some procedures recommended by physicians are not approved.
Medicare Part C, also called Medicare Advantage
Covers doctor visits, ambulance services, outpatient physical therapy, durable medical equipment, and X-rays, for persons ages 65 and older who are enrolled in this government program. (Specific answer required.)
Medicare Part B
The national average annual cost for this service was $93,075 in 2021. For Bowling Green, KY, the average cost was higher in 2021, at $99,280
For LTCI, this is typically 90 days
Elimination period
Best age to start considering whether to purchase long-term care insurance coverage
55 (will accept ages 50-59)
If a person runs out of assets and has inadequate income, this government program provides the person with assisted living or nursing home care.
Medicaid
The average annual cost of this service, in Bowling Green, KY, in 2020, was $42,600, which is less than the national average of $51,600.
Annual cost of an Assisted Living Facility
At what age, under the Affordable Care Act, will you be "kicked off" your parents' health insurance?
26
Typically, employers with less than 50 (and in some states, less than 100) full-time employers are not required by law to provide this
Group Health Insurance Coverage
Under a health care plan, this is the most you will have to pay for covered services in any plan year.
Out-of-pocket maximum limit
Available when you are enrolled in a High-Deductible Health Plan, both the employer and you may contribute to this type of account, up to a maximum of $3,650 (single) or $7,300 (family) in 2022
Health Savings Account (H.S.A.)
One of the largest reforms made by the Affordable Care Act to insurance practices was to prohibit insurance companies from doing what?
Excluding coverage for pre-existing conditions
Typically available for 18 months after a person departs employment, provided that the person pays the full premium plus a 2% surcharge (fee)
COBRA coverage (for continuation of group health insurance)
Permits the sole owner of a C corporation, who sells at least 30% of the shares to this type of retirement plan, to defer taxation on gains by reinvesting the sales proceeds in other securities.
Employee Stock Ownership Plan (ESOP)
Permits employee of a corporation to purchase stock in the corporation at up to a 15% discount to the market value of the stock.
Employee Stock Purchase Plan (ESPP)
Note: The discounted value (in this case 15%) is typically taxed at earned income rates to the employee.
Utilized where The employer wants to provide additional ability to defer income to executives who have already received the maximum benefits or contributions under the company’s qualified retirement plans.
Nonqualified Deferred Compensation Plan (NDGC). NOTE: A "Supplemental Executive Retirement Plan" (SERP) is a non-qualified deferred compensation plan in which the employer allocates employer contributions to the plan. Many plans have a combination of executive and employer contributions.
If an executive who resides in New York, has extensive non-qualified deferred compensation, and then retires and immediately moves to Florida, the payments from the NQDC plan are not subject to NY State income tax if:
Payments are made in installments over 10 years or more